What are candlestick patterns?

Candlestick patterns are technical trading tools that have been used for centuries to predict price direction. There are dozens of different candlestick patterns with intuitive, descriptive names; most also have a corollary pattern between the upside and downside.

Why are candlestick charts important?

Introduction Candlestick charts are technical tool that put together data for numerous time periods into single price bars. This enables them to become more important than traditional open-high, low-close bars or simple lines... What is the Cradle Pattern?

How do candlesticks work?

Candlesticks are created by up and down movements in the price. While these price movements sometimes appear random, they often form patterns traders use for analysis or trading purposes. Patterns are separated into two categories, bullish and bearish.

What makes a good Candlestick trade?

What’s important is the traded volume or liquidity. The environment in which the candlestick pattern is being analyzed matters a lot. The trade is more likely to work out if there are resistance or support lines nearby. The larger the patterns get, the more reliable the candlesticks tend to get.